What is DefiLlama?
DefiLlama is the largest total value locked (TVL) aggregator for decentralized finance (DeFi), focusing on accurate data and transparent methodology. A team of individuals and contributors maintains its fully open-source data.
DeFi applications and platforms allow users to invest money in staking, liquidity pools, lending, and other services.
While decentralized applications (dApps) were initially developed on the Ethereum blockchain, the DeFi space has become increasingly fragmented with the emergence of new blockchains that aim to complement or compete with Ethereum (ETH). This has made it harder to track DeFi activity across various platforms.
One way to measure the adoption of various DeFi protocols is to compare their TVL in smart contracts via the popular DeFi aggregator DefiLlama.
As blockchain data is publicly accessible, DefiLlama can track all transaction data using oracles or block explorers. The public DefiLlama application programming interface (API) can integrate the data into other websites.
DefiLlama is part of Llama Corp, a collective building out blockchain data analytics, infrastructure, payments, cross-chain, and media solutions, with over 10 million monthly users.
The platform takes its name from monitoring the “llamas” (DeFi projects) within the vast DeFi landscape.
If you are wondering who the founder of DefiLlama is, that person is said to be the pseudonymous 0xngmi.
Key Takeaways
- DeFiLlama compiles publicly available on-chain data and converts it into an easy-to-read format for users.
- DefiLlama is part of Llama Corp.
- A team of individuals and contributors maintains its fully open-source data.
- Users can analyze on-chain data on DeFiLlama to make well-informed investment decisions.
- Narrative Tracker on DeFiLlama compiles the market cap-weighted performance of various crypto sectors.
Key Features of DefiLlama
DefiLlama’s analytics dashboards aggregate data to display updated information about the TVL, revenue, fees, and volumes of all known DeFi protocols on Layer 1 (L1) and Layer 2 (L2) blockchains.
Its features include:
DeFiLlama promotes transparency by providing users with accurate real-time information to assess the security and credibility of DeFi projects.
It provides a tool for traders and investors to identify market trends and opportunities. It serves as an educational resource for newcomers to the DeFi space, helping them understand the different projects and how they are placed within the ecosystem.
DefiLlama Tools and Services
Here is a list of tools and services on DefiLlama:
What Data Does DefILlama Track?
Here is a list of on-chain data tracked by DeFiLlama:
- TVL
- Crypto market cap
- Stablecoin transactions
- Trade volumes
- Derivatives volume
- Fees collected by dApps and chains
- dApp revenue
- Protocol rankings
- Onchain yield
- NFT Floor price
- Token unlock data
- Interchain bridge inflow and outflow data
- CEX transparency data
- Governance proposal data
- Liquidation data
- Crypto funding data
- Total value lost to hacks
- ETH liquid staking data
- ETF AUM
DefiLlama Benefits and Use Cases
Here are the benefits and use cases of using DeFiLlama:
On-chain analysis is unique to the crypto market due to the publicly available blockchain data. Users can analyze on-chain data on DeFiLlama to make well-informed investment decisions.
Crypto investors can study the adoption trends of blockchain networks and dApps by analyzing growth rates of metrics such as TVL, stablecoin market cap, transaction volumes, DEX trades, and asset inflows.
Tracking token unlocks can help crypto investors prepare for portfolios against market volatility. Token unlocks are considered bearish events as they can add selling pressure on a token.
DeFiLlama offers tools such as LlamaFeed to help users stay updated with the latest developments in the crypto industry.
The CEX transparency data on DeFiLlama can help users analyze the health of the centralized crypto exchange they use. In the past, crypto investors have lost billions of dollars in crypto funds to CEX bankruptcies and hacks.
How to Use DefiLlama
The DefiLlama website presents an intuitive dashboard that overviews the DeFi market. You can use the search bar to look up specific DeFi projects or tokens or compare blockchains and yields. There are also sections on yields, pools, NFTs, bridges, governance, and more. You can navigate to specific categories to explore projects within that sector.
To view details on a specific project, click on the name. Data on each project page includes:
- TVL
- Market cap
- Amount staked
- Amount borrowed
- Staking
- Fees
- Revenue
- Governance
- Treasury
- Total raised
The TVL chart also shows markers for significant events such as the start of rewards, version launches, migrations, and major attacks.
The Bottom Line
DeFiLlama is a valuable resource that provides data and insights to help users navigate the complex and dynamic DeFi landscape.
As DeFi continues to evolve, platforms like DeFi Llama can promote transparency, mitigate risks, and enable users to understand the performance and potential of the applications and services available.